The Moygashel textiles factory on the outskirts of Dungannon, Co Tyrone,has announced that it is to lay off 73 workers in what management describe as a "restructuring" of the company, which specialises in the production of woven fabrics for apparel and home furnishings.
The redundancies come as the company is investing £5.5 million sterling in new buildings and equipment, which will centralise the bleaching and dyeing operations at Ballievey, and the weaving and home furnishings at the Moygashel plant. The company currently employs 273 people at the two locations.
The managing director, Mr Danny Vaughan, said that he regretted the job losses, but the investment and restructuring were essential if the company was to build on its long-term position in what he called "this most competitive of industries".
Moygashel, which was originally set up in 1795, was bought by its current owners, the Lamont Group, from the UK textile giant Courtaulds in 1982. It has a turnover of more than £20 million sterling, and exports around 70 per cent of its total output.
Fabrics for the apparel market, which account for around three quarters of its business, go mainly to the Far East and the United States, as well as to Australia and the UK.
The clothing and textiles sector in Northern Ireland is one of those most seriously affected by cheap imports, particularly from the Far East, a problem which has been exacerbated by the strength of sterling.
The Coats Viyella factory in Lurgan, which announced shortly before Christmas that it was going out of business, duly closed down last week with the loss of nearly 500 jobs. The Strabane firm Porters and Elizabeth Alexandra, which was based in Dromara, Co Down, are two other recent casualties.
But although sales at Moygashel have been affected in recent years by the changing trends in the fashion industry, which have resulted in a sharp downturn in the demand for linen, the company has been trying to counter this by reducing its dependence on 100 per cent linen fabric, and by increasing its output of blended linen fabrics.
It has also been attempting to increase volumes in the home furnishings sector, and to become more efficient, particularly through the introduction of new technology.
